Many people feel resentful toward car insurance. Every state except for three requires auto owners to maintain a minimum coverage of liability insurance. Business owners often don’t feel the same about the types of insurance that cover their lines of business. Just like medical practitioners take out malpractice insurance, business owners typically invest in commercial insurance, though they generally take out multiple different policies. Let’s brush over a few popular types of commercial insurance and describe them.
Errors and Ommissions (E&O) or Professional Liability Insurance
These two terms are often used interchangeably. E&O insurance is a type of coverage that pay out whenever businesses or their employees act negligibly. These careless actions must result in a failure to perform services that were promised or performed them incorrectly. Coverage for every type of commerce differs based on what line of business is concerned.
Workers’ Compensation Can Be Costly
Workers’ compensation, most commonly known as workers’ comp, is a type of insurance program that is taken out by each of the 50 states to pay for the lost wages, medical bills, and other expenses of workers who were injured while working. If employers are found responsible for promoting unsafe work environments or are otherwise on the hook for their workers’ injuries, they are forced to foot the state’s workers’ comp bill. These expenses don’t come up often, but they can be devastating to businesses.
Only businesses that sell manufactured goods take out product liability insurance. This type of insurance coverage pays out whenever customers of products are wrongly harmed by the products they purchase. Suits against products’ defects and shorts are often threatened, but they rarely reach fruition. Product liability insurance policies are also generally best for companies that push out hundreds of thousands, if not millions, of products on an annual basis.
As a business owner, it’s possible to lose everything you worked for in the blink of an eye. Thankfully, combinations of different types of business insurance lodi ca effectively cover all the proverbial bases of doing business.